The demand of Russians for real estate in Turkey increased by 20-50% in the week after the elections

The removal of uncertainty due to the presidential elections in Turkey has led to an increase in the demand of Russians for real estate in the country by 20-50% per week. Buyers with high budgets have become more active, counting on a passport in exchange for investments. Given the limited number of countries available to Russians for buying a home, the demand for real estate in Turkey should be sustainable, consultants say.

In the week after the presidential elections in Turkey, the number of requests for the purchase of real estate in the country by Russians increased by 50% week on week. Such data are provided by the editor-in-chief of Prian.ru Philip Berezin, explaining the activity, among other things, by the realization of pent-up demand. Tranio noticed a 20% increase in new bookings per week. “Managers are also seeing an increase in the activity of existing customers – buyers who previously suspended the selection are returning to view properties,” says Mikhail Bulanov, Executive Director of Tranio. Nevestate founder Ekaterina Nikitina says that many of the company’s clients took a wait and see attitude a couple of months before the election, and now deferred demand is being realized.

Turkey is one of the most popular foreign destinations for buying real estate from Russians, but this spring their activity has decreased. According to local authorities, in April, compatriots purchased 817 residential properties in Turkey in the country, which is 30% less than in March and 29% less than in April 2022.

Buyers of real estate began to follow the elections in Turkey because of the statements of candidates that directly affected their interests, Mikhail Bulanov believes. “Kemal Kılıçdaroğlu talked about plans to stop issuing Turkish passports to foreign investors,” he recalls. In addition, the expert adds, the candidate’s plans to support sanctions against Russia could be confusing. The situation with the elections in Turkey left a certain moment of uncertainty, Irina Mosheva, partner at Intermark Real Estate, agrees.

Mr. Bulanov notes the growth in demand of high-budget clients: the median budget of applications for the week increased by 48%, to €145,000 per lot, and there were more interested in buying property in Istanbul with a check of €390–465,000. The expert recalls that in order to participate in objects from $400 thousand are suitable for the passport program. “There is more confidence that it will be preserved,” Mikhail Bulanov notes. Anna Larina, director of the foreign real estate department at NF Group, says that two categories of buyers are now acquiring real estate in Turkey: those who plan to participate in the passport program and those who are looking for resort property for the family. Philip Berezin calls Mersin, Alanya and Antalya the most popular destinations. “Mersin was not so popular last year, and the current interest is due to rising prices in other resort provinces,” he explains. Tranio also notes an increase in demand for Mersin, where transactions are on average €98,000 per lot. Buyers of the mass segment, according to Mikhail Bulanov, also demand the province of Mugla.

Despite the revival, the demand for real estate in Turkey remains two times lower than last year’s level, Mr. Berezin clarifies, “but last year was anomalous.” The direction then received an impetus due to new restrictions for Russians in Europe, recalls Ekaterina Nikitina. According to Philip Berezin, this year the most pronounced decline in activity occurred in the segment of objects worth €50-100 thousand per lot, buyers with a relatively small budget are now more likely to look at options in Georgia and Egypt.

According to Mr. Berezin, in summer the demand for real estate in Turkey will be stable. Although the external conjuncture continues to influence the market. “If things get worse, the momentum could be huge, like last fall,” he adds. Ekaterina Nikitina also expects good sales, noting that the number of other locations available to Russians is limited. Among other popular destinations, she highlights the UAE, Thailand and Bali, and also sees an increase in interest in Oman, Bahrain, Qatar and Saudi Arabia.

Alexandra Mertsalova